The Rise and Fall of Enforcement Institutions: An Example of Religion and Secularism
AbstractSocieties in Western civilisation enforce their rules through formal institutions such as secularism (SES), whereas in less developed civilisations often rely on informal institutions such as religion (RES). The present paper attempts to explain the determinants of societiesâ choice between different enforcement systems, and their implications for society development using an example of two different enforcement models: one informal (RES) and one formal (SES). We find that, because the RES is based on beliefs, its efficiency depends heavily on its credibility, making it little flexible and highly susceptible to conflicts in dynamic environments. In contrast, because under the SES societal rules are enforced through a formal legal enforcement sector, the SES is more flexible though also more costly than the RES. The empirical evidence strongly supports our findings that wealthy, dynamic and fast growing economies typically choose the SES for enforcing societal norms and rules.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal European Review.
Volume (Year): 20 (2012)
Issue (Month): 02 (May)
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Other versions of this item:
- Pavel Ciaian & Jan Pokrivcak & d'Artis Kancs, 2011. "The Rise and Fall of Enforcement Institutions: An Example of Religion and Secularism," EERI Research Paper Series EERI_RP_2011_14, Economics and Econometrics Research Institute (EERI), Brussels.
- B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
- E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
- E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Institutional; Evolutionary
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- O44 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
- P37 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
- B - Schools of Economic Thought and Methodology
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